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Is your company struggling with the idea of using “cloud hosting” in order to save money?
Truth be known, using cost savings as the primary reason for moving to cloud will almost guarantee failure. Some reasons that typically lead to cloud computing costing more include:
With that said, however, over 82 percent of companies have saved moneyjust by implementing cloud computing, 14 percent were able to shrink the size of their IT department and 80 percent reported extreme productivity improvements. That means that moving to the cloud can actually make money!
An organization’s decision to move to the cloud is, above all else, a cultural change that could affect much more than the IT department.
First, using either cloud computing or traditional data center hosting comes with a decision to outsource all or a portion of your organization’s IT infrastructure. This should drive your initial decision of whether to consider cloud computing as a viable option. Although characterizing these observations as advantages or disadvantages depends on the enterprise’s specific situation, environment and requirements. Generally accepted views are reflected in Table 1.
Second, I’d like to point out that the term “cloud hosting” is very misleading. Even though it is broadly used in the marketplace to represent a fusion of cloud computing and data center hosting, the two business models are complete opposite.
This background is essential to putting the advantages and disadvantages of both into perspective because they are driven by their respective embedded business models. See Table 2.
The choices between outsourcing vs. insourcing or cloud computing vs. data center hosting are not a science, nor are they absolute. An organization of any significant size will most likely pursue an “all the above” strategy with constant corrections driven by cultural and business environments. As soon as you’ve made a decision you’ll probably start the process all over again.
So, my final piece of advice is to plan for and expect constant change because the most successful organizations have change management as a core competency.
For more views regarding this important decision, you should check out the following:
This post was written as part of the Dell Insight Partners program, which provides news and analysis about the evolving world of tech. Dell sponsored this article, but the opinions are my own and don’t necessarily represent Dell’s positions or strategies.